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SEGMENT INFORMATION | 6 Months Ended
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Sep. 30, 2017
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION We operate in four reportable segments: Phase I Deployment, Phase II Deployment, Services and Content & Entertainment or CEG. Our segments were determined based on the economic characteristics of our products and services, our internal organizational structure, the manner in which our operations are managed and the criteria used by our Chief Operating Decision Maker to evaluate performance, which is generally the segment’s income (loss) from continuing operations before interest, taxes, depreciation and amortization. Certain C orporate assets, liabilities and operating expenses are not allocated to our reportable segments.
Operations of: | Products and services provided:
Phase I Deployment | Financing vehicles and administrators for 3,724 Systems installed nationwide in Phase 1 DC's deployment to theatrical exhibitors. We retain ownership of the Systems and the residual cash flows related to the Systems after the repayment of all non-recourse debt at the expiration of exhibitor, master license agreements. As of September 30, 2017, we are no longer earning a significant portion of VPF revenues from certain major studios on 3,241 of such systems.
Phase II Deployment | Financing vehicles and administrators for our 8,904 Systems installed domestically and internationally, for which we retain no ownership of the residual cash flows and digital cinema equipment after the completion of cost recoupment and at the expiration of the exhibitor master license agreements.
Services | Provides monitoring, collection, verification and other management services to our Phase I Deployment, Phase II Deployment, CDF2 Holdings, as well as to exhibitors who purchase their own equipment. Services also collects and disburses VPFs from motion picture studios, distributors and ACFs from alternative content providers, movie exhibitors and theatrical exhibitors.
Content & Entertainment | Leading distributor of independent content, and collaborates with producers and other content owners to market, source, curate and distribute independent content to targeted and profitable audiences in theatres and homes, and via mobile and emerging platforms.
The following tables present certain financial information related to our reportable segments and Corporate:
|  | As of September 30, 2017
(In thousands) |  | Intangible Assets, net |  | Goodwill |  | Total Assets |  | Notes Payable, Non-Recourse |  | Notes Payable |  | Capital Leases
Phase I Deployment |  | $ | 138 |  |  | $ | — |  |  | $ | 9,222 |  |  | $ | 41,627 |  |  | $ | — |  |  | $ | — |
Phase II Deployment |  | — |  |  | — |  |  | 39,927 |  |  | 4,705 |  |  | — |  |  | — |
Services |  | — |  |  | — |  |  | 878 |  |  | — |  |  | — |  |  | — |
Content & Entertainment |  | 17,293 |  |  | 8,701 |  |  | 54,003 |  |  | — |  |  | — |  |  | — |
Corporate |  | 8 |  |  | — |  |  | 4,621 |  |  | — |  |  | 70,416 |  |  | 8 |
Total |  | $ | 17,439 |  |  | $ | 8,701 |  |  | $ | 108,651 |  |  | $ | 46,332 |  |  | $ | 70,416 |  |  | $ | 8 |
|  | As of March 31, 2017
(In thousands) |  | Intangible Assets, net |  | Goodwill |  | Total Assets |  | Notes Payable, Non-Recourse |  | Notes Payable |  | Capital Leases
Phase I Deployment |  | $ | 160 |  |  | $ | — |  |  | $ | 15,118 |  |  | $ | 51,955 |  |  | $ | — |  |  | $ | — |
Phase II Deployment |  | — |  |  | — |  |  | 48,461 |  |  | 9,149 |  |  | — |  |  | — |
Services |  | — |  |  | — |  |  | 1,052 |  |  | — |  |  | — |  |  | — |
Content & Entertainment |  | 20,057 |  |  | 8,701 |  |  | 79,911 |  |  | — |  |  | — |  |  | 8 |
Corporate |  | 10 |  |  | — |  |  | 6,792 |  |  | — |  |  | 78,995 |  |  | 58 |
Total |  | $ | 20,227 |  |  | $ | 8,701 |  |  | $ | 151,334 |  |  | $ | 61,104 |  |  | $ | 78,995 |  |  | $ | 66 |
|  | Statements of Operations
|  | Three Months Ended September 30, 2017
|  | (Unaudited, in thousands)
|  | Phase I |  | Phase II |  | Services |  | Content & Entertainment |  | Corporate |  | Consolidated
Revenues |  | $ | 5,329 |  |  | $ | 2,591 |  |  | $ | 2,105 |  |  | $ | 6,253 |  |  | $ | — |  |  | $ | 16,278 |
Direct operating (exclusive of depreciation and amortization shown below) |  | 263 |  |  | 79 |  |  | 10 |  |  | 3,689 |  |  | — |  |  | 4,041 |
Selling, general and administrative |  | 83 |  |  | 87 |  |  | 258 |  |  | 3,903 |  |  | 1,916 |  |  | 6,247 |
Allocation of Corporate overhead |  |  |  |  |  |  |  | 410 |  |  | 872 |  |  | (1,282 | ) |  | — |
Provision for doubtful accounts |  | 908 |  |  | 41 |  |  | — |  |  | — |  |  | — |  |  | 949 |
Depreciation and amortization of property and equipment |  | 1,596 |  |  | 1,880 |  |  | — |  |  | 82 |  |  | 87 |  |  | 3,645 |
Amortization of intangible assets |  | 12 |  |  | — |  |  | — |  |  | 1,381 |  |  | 2 |  |  | 1,395 |
Total operating expenses |  | 2,862 |  |  | 2,087 |  |  | 678 |  |  | 9,927 |  |  | 723 |  |  | 16,277 |
Income (loss) from operations |  | $ | 2,467 |  |  | $ | 504 |  |  | $ | 1,427 |  |  | $ | (3,674 | ) |  | $ | (723 | ) |  | $ | 1 |
The following employee and director stock-based compensation expense related to the Company’s stock-based awards is included in the above amounts as follows:
|  | Phase I |  | Phase II |  | Services |  | Content & Entertainment |  | Corporate |  | Consolidated
Direct operating |  | $ | — |  |  | $ | — |  |  | $ | 8 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 13 |
Selling, general and administrative |  | — |  |  | — |  |  | 4 |  |  | 223 |  |  | 90 |  |  | 317 |
Total stock-based compensation |  | $ | — |  |  | $ | — |  |  | $ | 12 |  |  | $ | 228 |  |  | $ | 90 |  |  | $ | 330 |
|  | Statements of Operations
|  | Three Months Ended September 30, 2016
|  | (Unaudited, in thousands)
|  | Phase I |  | Phase II |  | Services |  | Content & Entertainment |  | Corporate |  | Consolidated
Revenues |  | $ | 9,592 |  |  | $ | 3,273 |  |  | $ | 3,122 |  |  | $ | 7,893 |  |  | $ | — |  |  | $ | 23,880 |
Direct operating (exclusive of depreciation and amortization shown below) |  | 211 |  |  | 49 |  |  | 2 |  |  | 4,640 |  |  | — |  |  | 4,902 |
Selling, general and administrative |  | 116 |  |  | 23 |  |  | 71 |  |  | 3,475 |  |  | 1,554 |  |  | 5,239 |
Allocation of Corporate overhead |  | — |  |  | — |  |  | 398 |  |  | 904 |  |  | (1,302 | ) |  | — |
Restructuring, transition and acquisition expenses, net |  | — |  |  | — |  |  | — |  |  | (3 | ) |  | 23 |  |  | 20 |
Depreciation and amortization of property and equipment |  | 5,629 |  |  | 1,880 |  |  | — |  |  | 67 |  |  | 187 |  |  | 7,763 |
Amortization of intangible assets |  | 12 |  |  | — |  |  | — |  |  | 1,449 |  |  | 3 |  |  | 1,464 |
Total operating expenses |  | 5,968 |  |  | 1,952 |  |  | 471 |  |  | 10,532 |  |  | 465 |  |  | 19,388 |
Income (loss) from operations |  | $ | 3,624 |  |  | $ | 1,321 |  |  | $ | 2,651 |  |  | $ | (2,639 | ) |  | $ | (465 | ) |  | $ | 4,492 |
The following employee and director stock-based compensation expense related to the Company’s stock-based awards is included in the above amounts as follows:
|  | Phase I |  | Phase II |  | Services |  | Content & Entertainment |  | Corporate |  | Consolidated
Direct operating |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Selling, general and administrative |  | — |  |  | — |  |  | 1 |  |  | 47 |  |  | 692 |  |  | 740 |
Total stock-based compensation |  | $ | — |  |  | $ | — |  |  | $ | 3 |  |  | $ | 47 |  |  | $ | 692 |  |  | $ | 742 |
|  | Statements of Operations
|  | Six Months Ended September 30, 2017
|  | (Unaudited, in thousands)
|  | Phase I |  | Phase II |  | Services |  | Content & Entertainment |  | Corporate |  | Consolidated
Revenues |  | $ | 9,660 |  |  | $ | 5,652 |  |  | $ | 4,501 |  |  | $ | 11,705 |  |  | $ | — |  |  | $ | 31,518 |
Direct operating (exclusive of depreciation and amortization shown below) |  | 551 |  |  | 190 |  |  | 10 |  |  | 7,356 |  |  | — |  |  | 8,107 |
Selling, general and administrative |  | 183 |  |  | 166 |  |  | 521 |  |  | 7,884 |  |  | 3,811 |  |  | 12,565 |
Allocation of Corporate overhead |  | — |  |  | — |  |  | 800 |  |  | 1,701 |  |  | (2,501 | ) |  | — |
Provision for doubtful accounts |  | 908 |  |  | 41 |  |  | — |  |  | — |  |  | — |  |  | 949 |
Depreciation and amortization of property and equipment |  | 3,916 |  |  | 3,761 |  |  | — |  |  | 151 |  |  | 174 |  |  | 8,002 |
Amortization of intangible assets |  | 23 |  |  | — |  |  | — |  |  | 2,763 |  |  | 4 |  |  | 2,790 |
Total operating expenses |  | 5,581 |  |  | 4,158 |  |  | 1,331 |  |  | 19,855 |  |  | 1,488 |  |  | 32,413 |
Income (loss) from operations |  | $ | 4,079 |  |  | $ | 1,494 |  |  | $ | 3,170 |  |  | $ | (8,150 | ) |  | $ | (1,488 | ) |  | $ | (895 | )
The following employee and director stock-based compensation expense related to the Company’s stock-based awards is included in the above amounts as follows:
|  | Phase I |  | Phase II |  | Services |  | Content & Entertainment |  | Corporate |  | Consolidated
Direct operating |  | $ | — |  |  | $ | — |  |  | $ | 8 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 13 |
Selling, general and administrative |  | — |  |  | — |  |  | 4 |  |  | 223 |  |  | 407 |  |  | 634 |
Total stock-based compensation |  | $ | — |  |  | $ | — |  |  | $ | 12 |  |  | $ | 228 |  |  | $ | 407 |  |  | $ | 647 |
|  | Statements of Operations
|  | Six Months Ended September 30, 2016
|  | (Unaudited, in thousands)
|  | Phase I |  | Phase II |  | Services |  | Content & Entertainment |  | Corporate |  | Consolidated
Revenues |  | $ | 18,756 |  |  | $ | 6,453 |  |  | $ | 6,417 |  |  | $ | 14,729 |  |  | $ | — |  |  | $ | 46,355 |
Direct operating (exclusive of depreciation and amortization shown below) |  | 434 |  |  | 102 |  |  | 1 |  |  | 10,053 |  |  | — |  |  | 10,590 |
Selling, general and administrative |  | 249 |  |  | 82 |  |  | 302 |  |  | 7,544 |  |  | 3,497 |  |  | 11,674 |
Allocation of Corporate overhead |  | — |  |  | — |  |  | 795 |  |  | 1,800 |  |  | (2,595 | ) |  | — |
Restructuring, transition and acquisition expenses, net |  | — |  |  | — |  |  | — |  |  | 87 |  |  | 23 |  |  | 110 |
Depreciation and amortization of property and equipment |  | 12,020 |  |  | 3,761 |  |  | — |  |  | 135 |  |  | 371 |  |  | 16,287 |
Amortization of intangible assets |  | 23 |  |  | — |  |  | — |  |  | 2,899 |  |  | 5 |  |  | 2,927 |
Total operating expenses |  | 12,726 |  |  | 3,945 |  |  | 1,098 |  |  | 22,518 |  |  | 1,301 |  |  | 41,588 |
Income (loss) from operations |  | $ | 6,030 |  |  | $ | 2,508 |  |  | $ | 5,319 |  |  | $ | (7,789 | ) |  | $ | (1,301 | ) |  | $ | 4,767 |
The following employee and director stock-based compensation expense related to the Company’s stock-based awards is included in the above amounts as follows:
|  | Phase I |  | Phase II |  | Services |  | Content & Entertainment |  | Corporate |  | Consolidated
Direct operating |  | $ | — |  |  | $ | — |  |  | $ | 3 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 5 |
Selling, general and administrative |  | — |  |  | — |  |  | 1 |  |  | 93 |  |  | 921 |  |  | 1,015 |
Total stock-based compensation |  | $ | — |  |  | $ | — |  |  | $ | 4 |  |  | $ | 95 |  |  | $ | 921 |  |  | $ | 1,020 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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